India, EU Reaffirm Commitment To Early Conclusion Of Free Trade Agreement Talks

India and the European Union (EU) on Friday held talks in Brussels on the proposed Free Trade Agreement (FTA), reaffirming their commitment to a rules-based trading framework and a modern economic partnership that protects the interests of farmers and MSMEs.

Commerce and Industry Minister Piyush Goyal is on a two-day official visit to the EU headquarters to participate in the discussions.

During the visit, Goyal held high-level talks with EU Trade and Economic Security Commissioner Maros Sefcovic aimed at securing a mutually beneficial FTA.

"During this dialogue, we deliberated across key areas of the proposed agreement. We reaffirmed our commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs while integrating Indian industries into global supply chains," Goyal said in a social media post.

The ministerial engagements follow a week of intensive deliberations in Brussels, building on the groundwork laid during high-level discussions held earlier this week on January 6–7 between India’s Commerce Secretary Rajesh Agrawal and European Commission Director General for Trade Sabine Weyand.

The talks assume added significance as both sides are keen to conclude negotiations at the earliest. The India–EU Summit is expected to be held here on January 27, with top EU leaders scheduled to attend the Republic Day parade as chief guests on January 26.

On December 15, Agrawal said negotiations between India and the 27-nation EU bloc had entered the “most difficult” phase, with both sides working to bridge differences and wrap up the talks soon.

So far, 16 rounds of negotiations have been completed.

India is seeking zero-duty access for its labour-intensive sectors such as textiles and leather, while the EU is pressing for substantial tariff cuts on automobiles, medical devices, wine, spirits, meat and poultry, along with stronger intellectual property protections.

In June 2022, India and the EU resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of more than nine years. The talks had stalled in 2013 over differences on market access.

India’s bilateral trade in goods with the EU stood at USD 136.53 billion in 2024–25, with exports worth USD 75.85 billion and imports of USD 60.68 billion, making the bloc India’s largest trading partner in goods.

The EU accounts for about 17 per cent of India’s total exports, while exports to India make up around 9 per cent of the bloc’s total overseas shipments.

Indian exports to the EU — including ready-made garments, pharmaceuticals, steel, petroleum products and electrical machinery — could become more competitive if the agreement is finalised.

The India–EU trade pact negotiations span 23 policy areas or chapters, covering trade in goods and services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications and sustainable development.